Valdese passes controversial 2026-27 budget proposal in split vote

With a state-mandated deadline looming, and the town in the midst of “a crossroads,” the Valdese Town Council battled preferences and intentions during the debate that resulted in passing the controversial 2026-27 budget in a split vote.

With Mayor Keith Huffman sitting in the middle of the council table, and before a standing-room only crowd, council members tossed new ideas for resolution of the $10.8 million public safety building as if this were the beginning of the budget cycle, not the final hour.

Municipal budgets in North Carolina must be adopted by July 1 each year.

Mayor Pro Tem Rexanna Lowman, reading from a prepared statement, said “Valdese is at a crossroads” because of the budget complications and lack of unity among residents and elected officials.

Councilwoman Shannon Radabaugh suggested moving all town government operations to the Old Rock School, converting the existing Town Hall into the police department, and constructing a new building for the fire department, which would theoretically save millions of dollars.

She motioned to delay passage of the budget until June 22 — days before the state deadline — to consider options. The motion was defeated in a 3-2 vote.

The proposed budget passed in a 3-2 vote, meaning the property tax rate will go up from 41.5 cents per $100 valuation to 54.5 cents with the addition of a 13 cents fire district tax.

Before the vote, the council held a nearly two-hour public hearing on the budget with 10 speakers during the hearing and lengthy discussion between council members.

Nearly every seat was full in the council chambers and a handful of residents stood by the walls or clustered around the door. There were between 55 and 60 people in the audience.

Several people spoke in favor of the budget. Several others spoke against it. Two people who were victims of violent attacks in the past shared their appreciation for the Valdese Police Department.

Robert Stevenson, who has been a Valdese resident for more than 30 years, supported the tax raise in order to build the public safety facility and give employees higher pay. Stevenson said the former council’s actions caused delays for the project that, ultimately, cost the town millions.

The estimate for a larger version of the public safety building was a little more than $7 million in 2024, Town Manager Todd Herms said previously.

Stevenson and another resident, Michael Farris, reminded listeners of that in their address to the council.

“Now that number is north of $10 million. Where does it stop? Do we really think that it’s going to be cheaper the longer we keep kicking this can down the road?” Farris said.

Stevenson said, “Time is money on the public safety building project. Let’s get on with it as quickly as possible.”

Valdese resident Ben Lutz said the council is doing a great job but needs to consider residents living on a fixed income.

“There’s a community which is not represented here tonight,” Lutz said. “Because I don’t see the people that are older and not able to get out of their house to come to a meeting like this.”

Lutz said many people are struggling with expenses, including costly medical bills.

“I wish I had a lot of money like some of these people (supporting a tax increase) apparently do … but a lot of us don’t have that. Think of us people, the people that are not quite as lucky as you are.”

Former councilman Glenn Harvey also criticized the budget proposal.

When the public hearing closed, Radabaugh made a motion to defer the vote until June 22. Councilwoman Heather Ward seconded.

Radabaugh proposed moving Town Hall staff to part of the Old Rock School and renovating the Town Hall building to be the police department. Then, instead of constructing a combination fire and police department, the town could plan for a building that is only a fire department.

Director of Community Affairs and Tourism Morrissa Angi confirmed that there is limited space, and using the two open rooms would compromise operations of the Old Rock School. Those rooms are used for events, Angi said.

The question of obtaining an estimate for renovations and moving Town Hall staff — which would also require minor renovations to create ADA-compliant office spaces — was raised. It was determined that an estimate would not likely be obtained before June 22.

Herms and Assistant Town Manager Bo Weichel said they are operating on a tight schedule in order to go before the Local Government Commission (LGC) and request a loan. Delaying the vote would mean the soonest staff could go before the LGC would be September, and by then, D. R. Reynolds Guaranteed Maximum Price (GMP) would expire.

If the GMP expires, another would have to be obtained. It could be higher than the price D. R. Reynolds will have ready between early to mid-June.

After discussion, Lowman motioned to approve the budget. Councilman Gary Ogle seconded.

Lowman, Ogle, and Councilwoman Melinda Zimmerman voted in favor. Ward and Radabaugh voted against it.

PUBLIC SAFETY BUILDING LOAN

The council voted 3-2 to move forward with seeking a loan from the LGC for the public safety building.

Ward and Radabaugh were the dissenting votes.

The building could cost between $10.8 and $11.2 million. General contractor D. R. Reynolds is expected to have a Guaranteed Maximum Price (GMP) around mid-June.

Valdese staff expect the loan will be approved. The council’s final approval or denial of the lending proposal will be on Aug. 3.

The building itself will be collateral.

VALDESE BLUFFS

Council members voted 4-1 to approve an agreement with Burke County where each contributes $800,000 to build sewer infrastructure for the Valdese Bluffs housing development.

Ward was the dissenting vote.

Valdese Bluffs has been in the works for about five years and has faced a number of setbacks, including the realization that the necessary infrastructure would cost twice the amount provided by a reimbursement-based grant from the state legislature.

The plan calls for up to 140 single-family homes, each expected to be valued around $350,000, adding an estimated $49 million to the county’s tax base.

County Manager Brian Epley previously said the developer must build the first 27 homes in the three-year timeframe during which infrastructure is built. The developer will owe $14,440 for every unit that is not built on time. There are also penalties for homes that do not meet the $350,000 value.